#feedfeverchallenge

One of my favourite memories with cryptocurrencies was when I just started my journey. What I engaged in was arbitrage and otc-p2p, even though I did not know it had a name. I would buy #BTC from a vendor and send to a local exchange to sell. I made quick bucks from it so I continued the whole process because it made me money. Unfortunately, I did not know anything about #kyc and trading limits or account types, so I traded up to my account limit and could no longer use the exchange anymore. It happened that I had just deposited BTC and was about to withdraw it in fiat when I noticed an "err:" message saying I had reached my limit and needed to do KYC. Luckily I was able to withdraw it in BTC form, and it marked my end with that exchange.

I have also had my share form some popular airdrops. It made me "free-money". My first airdrop was worth $400 hitherto, but as the project went on, the value even appreciated. It was a wonderful experience, very delightful for me. I then imagined how much money could be made from that branch of cryptocurrencies if it were fully maximised.

#feedfeverchallenge

Making a loss is a constant for every investor, however with risk management an investor's profit will outshine his losses. In crypto trading, the golden rule for investors is to protect their capital at all costs. We'll do an expatiate, but first let's break the whole thing down.

What's a Trade??

Trade is simply buying and or selling of any commodity, and in this case, we buy and sell cryptocurrencies (usually to make profits). In every transaction that takes place, there's always a certain risk attached, so that there's no trade or transaction that is totally risk-free. However, within a reasonable man's standard, one will agree without doubting that there are different degree levels attached to various risks. The million dollar question then would be "how can one effectively manage his risks". Investors must agree that the crypto market promises them nothing, so we must expect the good, the bad and the ugly.

Some Tips On Risk Management While Trading

Risk what you can afford to lose: Investors should not use borrowed funds for trading neither should they use money meant for daily expenses. Investors should also never make the mistake of ever going all in, for the sake of sanity. We must learn to diversify our portfolio into different projects as a hedge to our funds.

Control your emotions: After every trade, an investor must be discipline enough to allow the market perform its magic and play out as projected. Whatever we see, we take. When we get to take profit levels, an investor must be willing and able to accept the profit so that his greed doesn't lead him to doom

DYOR: All investors must do their own research to manage their portfolio effectively. I made an earlier content on the importance of DYOR. With the knowledge on any project, an investor can easily know when to buy and when to sell.

Timing: Undoubtedly the crypto market is designed to reward investors who jump in early and sometimes stay long. This can only be useful after an investor has done his research.

Protect your capital at all cost: Recall that this is the golden rule for all investors when it comes to trading. A trade is only possible when there's capital. Capital is the wealth reserved for the production of further or other wealth. How then would an investor carry out a trade if he looses his own capital. Since I'm a trader, I'll like to relate specifically to this tip. There are scenarios where traders are in losses on some trades but are too emotional to close the trade. To close a trade with 40 percent loss involves mental strength. It must be cultivated because it is indispensable. Secure the remaining and incur the loss, there'll be other opportunities. See you all at the top.

Uncertainty in the Market: The whole crypto space is built on a probability scale, so that the only certainty is the uncertainty in the market. With this knowledge an investor will not be too certain in his decisions, because there is always an element of surprise in the market.

Flow with the trend: There are times and seasons in every financial market. A lot of people have made massive gains that are life changing, same with massive losses unfortunately. There is the bull market as well as the bear market.

Bear market = More red candlesticks than greens overall within a period of time.

Bull market = More green candlesticks than red overall within a period of time.

Take cover when necessary and exploit the most you can. The market is always there, take your time.

Trade plan and strategy: Investors must be discipline enough to make trade plans and follow them accordingly. For every trade, there must be an entry level, a take profit level and an exit level planned out strategically without haste.

NB: We should not be too rigid to follow strictly the processes involved in risk management because ironically, there's a risk attached to it as well. If an investor is too rigid in managing his trades, the risk attached to it is that he will only take trades that will yield little profits. There's also such a thing as "degen-trading or degen-traders" who accept the opinion that there are premium risks attached to trades, however they'll take them without even due-research or caution.

#FeedFeverChallenge

This article tackles:

The importance of DYOR.

Ways of practicing DYOR before investing in cryptocurrencies.

Before I set the ball rolling, let's recall an earlier feed where I talked about DYOR, I'll drop the link for reference purposes.

https://www.binance.com/en/feed/post/356265?ref=39939772&utm_campaign=app_share_link

If you look closely at the afore-cited media, Binance explicitly added it to her disclaimer. So what is this DYOR everybody seems to be using?. DYOR is a popular crypto term that means "do your own research". Unfortunately over 90% of crypto investors do not do their research and ultimately end up losing huge chunks of their funds.

The importance of research methodology while investing into cryptocurrencies can neither be over emphacised nor under emphacised. Research is a powerful tool for investors because it keeps you aware of the various risks as well as the potential rewards sometime in the future, now let's look at some importance of #dyor .

Importance of DYOR

Basic knowledge of the asset(s) involved:

After research, it's easier for investors to relate with one another, ask questions and also give answers to questions surrounding the project/asset, e.g the asset name, the network it's built on, the major use cases et cetra.

Advanced knowledge of the asset(s) involved:

A deeper delve and inquiry into the nature of an asset keeps an investor 5 steps ahead of other investors. Research is a never ending process, especially given the nature of cryptocurrencies and the technologies involved. Some advanced knowledge include, tokenomics i.e the token-economics including supply, market capitalisation, token emissions et cetra.

When an investors does his research, he keeps track records of the performance of an asset, which can happen in different ways. Some investors prefer to see a project go through hurdles and come out strong before investing. They use this strategy as a standard of measurement for projects.

Recall that this research is never ending, hence, an investor is up to date concerning the activities of the team behind the project as well as what they're building. This will project his expectations of the asset's performance, either to the upside or the downside overtime and ultimately afftect his decision.

One popular saying is that information is power. With the information at the finger tips of an investor, one would not panic-sell nor panic-buy irrespective of popular #fud and #fomo mechanisms.

Having looked at some of the importance of DYOR, we need to know how to actually DYOR by ourselves. Some investors see it as a Herculean task. It is however indispensable irrespective of the arduous nature of this process. Now let's look at some ways of practicing DYOR in cryptocurrencies.

Ways of Practicing DYOR In Cryptocurrencies

1) Investors must utilize coin tracking apps such as coinmarketcap, coingecko et cetra.

These apps have vital information concerning different coins. Some of the information contained are;

The total supply

Circulating supply

Market Capitalisation

Fully Diluted Valuation

Project Team

Project Website

Social Media Handles/Links

Markets to Trade

Asset Price

Trading Volume

Et cetra

Basic steps to DYOR

Go to coingecko.com or coinmarketcap.com

Search any coin

Access the information

2) Investors must also utilize the twitter social media app. How?

Use the $ ticker as well as the # tag to search how much the coin is trending and being talked about. Eg, search $btc or #BTC to know how much Bitcoin is being talked about.

Follow the project's social media handle and keep up to date on the day to day activities of the project. Their telegram and discord for everyday chat and their twitter for engagements.

3) Search their website for the project's roadmap and whitepaper to be sure of the blueprints.

These and many more are some of the various steps investors should take when it comes to investing in cryptocurrencies.

Who is Satoshi ??

Satoshi Nakamoto is the pseudonym used to replace the identity of the person or group of persons who designed the Bitcoin on the Blockchain network. It is therefore obvious that the person(s) behind this great technology have - hitherto - decided to guise their identity, which on the one hand is a catalyst for Bitcoin's adoption while on the other, it destroys the belief in such a potential technology.

The mystery man or men have gotten a lot of traction so that analysts have even tried to decode the meaning of the name, at least to a reasonable man's standard. They believe that the alias has a necessary connection with some big companies, so that they have an extension to one big company or another. Hence;

SA - From the popular SAmsung company

TOSHI - From TOSHIba

NAKA - From NAKAmichi and

MOTO - From MOTOrola

Does this make sense to you??

Let me know in the comment section.

The core of crypto currency revolves around the Blockchain Network, understanding it is enough leverage for you. You're still early.

)The crypto market promises you nothing, so you must expect everything, the good the bad and the ugly.

There are profits as well as losses, but a lot of us are too blind to agree to this. We just want to believe that everyday we make profit, it's not so in this space. From my experience, I have come to understand that making a loss is a constant for every trader, however the profitable traders prepare for the losses before they even come, so that their profits outshine their losses.

The crypto market is designed to rewarding people who jump in early and stay long. Remember that I have told you that you're not late in this space, since the crypto market is still at infancy, you can still exploit the most you can.

There is the bull market as well as the bear market just like other financial markets.

Bear market = More red candle sticks than green, overall in a market within a particular period of time

Bull market = More green candle sticks than red, overall in a market within a particular period of time.

We're currently in a bear market, and a lot of people who have never experienced the bear market think crypto is just up, up and up. There are times when it's down down and down.

Candlesticks = Representation of the upward and downward movement of prices in a market as a result of human behavior. Do not be deceived, just learn and don't stop learning.

Nothing beats your experience and your consistency in this space, quote me anywhere. Just try to be discipline, show up even if it's 1hr every week, you'll improve over time. Even CZ has said something about this in his past tweets.

Errrm

I) Try not to use borrowed money for crypto. In my scenario if I borrow money to trade, the fear that the money is not mine affects my trade actions usually negatively.

II) Put in an amount that you can afford to let go or lose. Old, but Gold.

III) Don't put money meant for daily expenses, try to have some cash at hand for un-forseen contingencies.

IV) Never go all in. In this space, the idea of "don't put all your eggs in one basket is very prominent. You must learn how to diversify your portfolio into different projects projected to do well, so that you hedge your assets in that way.

Speed and celerity is essential. You must be very fast and smart in this space since you are not the only one in the market. There are millions of traders and investors out there, big institutions as well as hedge funds. You must be prepared.

Learn to control your emotions whenever you have open trades. Control your greed level, so that you remember to take profit. Control your fear as well, give the market space to play out according to your plan.

No matter who says what, as far as this space is concerned from my little experience, still do your own research.

I am here to preach the good news to everyone, this is the good news. Financial freedom is the basis of crypto currency, not dependency. Currently what's popping is still De-fi (decentralized finance) it has changed the lives of a lot of people both to the positive and negative side., brace up.

Just like in the physical world, the are crypto scams out there, you must be smart and careful. Very popular in De-fi is rug pull.

Rug pull = removal of liquidity from an asset or project.

Liquidity = Money set aside for the ease of buying and selling an asset without causing a drastic change in the asset's price. I.e how quickly it can be bought and how quickly it can be sold without affecting the market price.

Flow with the trend and try to exploit it early. A lot of people have made massive gains that are life changing. Same with massive losses that are live changing, lol.

The whole crypto space is built on a probability scale (my quote), so that the only certainty is the uncertainty in the market. Know this and know peace.

Of course there are things I have left out, I'm not human-machine. However these are the very vital ones that have come to my mind.